Abko Announces 2 Billion KRW Share Buyback to Enhance Shareholder Value

[Asia Economy Reporter Park Hyungsoo] ABKO, a specialized company in gaming gear and home appliances brands, has initiated its first-ever share repurchase since its listing to enhance shareholder value and stabilize its stock price.

On the 22nd, ABKO announced that it signed a trust contract for the acquisition of treasury stocks worth 2 billion KRW with Shin Young Securities.

An ABKO representative explained, "The decision to repurchase treasury shares is an expression of confidence in the company's mid- to long-term growth potential and future value," adding, "It is being carried out to enhance market trust." The representative further stated, "Considering the special circumstances of the upstream industry, which has been hit by the recent shortage of graphics cards due to cryptocurrency mining and the impact of COVID-19, we believe the current stock price is undervalued compared to the intrinsic corporate value and growth potential."

The representative also emphasized, "From the second half of this year, we expect the stabilization of graphics card supply and the recovery of the upstream industry due to expanded vaccination," adding, "With major global game releases scheduled one after another, there is currently an overwhelming backlog demand for PCs and peripherals."

As ABKO has officially entered the office and home gaming gear markets, the company expects its performance to recover starting from the second quarter.

ABKO is the number one company in the domestic gaming gear market share, including keyboards, mice, and headsets. To respond to the gaming PC market changes after COVID-19, ABKO reorganized its business portfolio in the first half of this year and newly entered the office and home gaming gear markets. The company is also conducting a home appliance business through its own brand OHELLA.

An ABKO representative stated, "We will simultaneously increase corporate value and shareholder value through growth," and added, "We plan to continue various shareholder-friendly policies in the future."

This content was produced with the assistance of AI translation services.